Consolidating debt mortgage
If you can afford to take the risk then a tracker mortgage could be ideal while rates are low.If you can't afford the risk, then a fixed rate deal is the safest bet.If you’re not sure which is best for you, read our guide to fixed rate and variable rate mortgages or see below for a brief overview of the main differences.Remortgaging for a better deal and to save money on your monthly repayments is one of the more common reasons to remortgage your property.If you expect the bank rate to go down then you could be getting a good deal, but if it goes up then you could be risking higher monthly repayments.
In order to switch to a remortgage deal, you will often have to pay an early exit fee along with the legal costs and a survey.
Once you've figured out what you need your remortgage deal for, be it debt consolidation or saving money, then it's time to decide what type of remortgage you need.
The mortgage type you choose will affect how well the remortgage deal works in your favour.
It’s worth bearing in mind that the new mortgage provider you switch to will need to value your property, so be prepared to research the local house prices and make a note of any home improvements you’ve made, just in case they come back to you with a lower than expected estimate.
While mortgages will offer far lower interest rates than credit cards and an improvement on personal loan rates, that doesn’t mean that remortgaging for debt consolidation will save you money.